MUMBAI : The Reserve Bank of India's directive asking banks to make 10 per cent provisions on all moratorium loans will shave at least ₹35,000 crore off their profitability in financial years 2019-20 and 2020-21, according to a report.
On Friday, the central bank, in its second set of liquidity-enhancing measures announced ₹1 lakh crore specifically targeted fund infusion to small- and mid-sized shadow banks, home financiers and micro-lenders, which will ultimately go a long way in offering some succour to the small and medium enterprises. "While the liquidity boosters will help the small lenders, the RBI has also stipulated banks to create a 10 per cent provisioning on all loans that are overdue but not yet NPAs (non-performing assets)